Valley Engineers Inc. v. Electric Engineering Co.

This case concerns sanctions for discovery violations.

Jurisdiction and Standards of Review.

We have jurisdiction over this timely filed appeal pursuant to 28 U.S.C. § 1291 . A dismissal under Fed.R.Civ.P. 37 is reviewed for abuse of discretion. Anheuser-Busch, Inc. v. Natural Beverage Distributors, 69 F.3d 337, 348 (9th Cir.1995). The district court’s factual findings are reviewed for clear error. Id.

Facts.

Nugget Hydroelectric hired Electric Engineering to build four small hydroelectric projects for $11 million. Because construction was going badly, the scope of the contract was reduced from four projects to one. The contract price on the remaining project, Deadwood Creek, was raised from $2 million to $2.5 million. The contract was a turn-key deal, requiring that Electric Engineering get all required permits and easements, and take full responsibility for design, not relying on Nugget Hydroelectric. Electric Engineering did not build the project as promised, and was fired when it missed its deadlines. Electric Engineering’s president knew when Electric Engineering agreed to the revised Deadwood Creek contract that Electric Engineering was not going to perform as…